CASE STUDY
Launching a Medical Device Product While
Positioning the Company for Acquisition
Validating a Sales Model for the U.S. and Beyond
Challenge
A medical device company
needed a strategic sales partner
to help accelerate revenue and
successfully sell their product into
the medical device marketplace.
Action
Utilizing our proprietary Sales
Prototyping® process, we created
a scalable sales force, designed to
optimize market launch speed
while minimizing business and
financial risk, with the agreed-upon goal of an acquisition by a
targeted acquiring company.
Evaluating Sales Models
A medical device company approached SalesForce4Hire, seeking a strategic sales
partner with experience and success in launching products into the medical device
marketplace. The company had been highly focused on staying as non-dilutive and
capital efficient as possible.
They were also evaluating innovative sales models to launch their new product
successfully, accelerate revenue and increase market traction to attract potential
acquirers, with the lowest amount of risk.
The objective of the medical device company was to leverage the expertise of a sales
partner by employing a “shared risk/shared reward” Sales Prototyping model.
Important benefits of this flexible model include:
• Ability to capture and utilize real-world customer feedback early and to validate
and optimize the sales cycle
Results
• Quick acceleration of revenue stream
The custom-designed sales
prototype placed the medical
device company in the best
possible position to be acquired.
The acquisition expanded market
presence beyond the United
States and into the global market.
• Mitigation of financial and HR risk
• Sales teams can easily be either disbanded in the case of a liquidity event, with no
HR risk to client, or transferred back to client with the blueprint for full-scale
deployment
• Mutually-aligned interest, based on pay-for-performance, “shared risk/shared
reward” business model
• Significant increase in company’s valuation at exit
Acquiring companies will pay a higher value when the products they are purchasing have
proven market traction and can plug in easily to their existing core sales channel.
Insights Gained, Goals De�ined
As discussions progressed with the client, it became apparent
that there were two goals to consider. The first option under
consideration was to attract venture capital funding for further
product development.
The second route was to attract potential acquirers that could
provide a liquidity event. After SalesForce4Hire consulted with
the client on these options, it was decided that we would
utilize our proprietary Sales Prototyping process, which allows
us to create a scalable sales force and is designed to optimize
market launch speed while minimizing business and financial
risk.
SalesForce4Hire built a sales prototype on a small scale to
analyze and optimize the following:
• Customer acquisition process
• Acceleration of market traction
• Length of the sales cycle
• Messaging focused on economic and clinical value
• Market risks vs. rewards; Reimbursement issues
• Call points, including value-analysis committees, key
opinion leaders, physicians, group purchasing organiza
tions, integrated delivery networks, distributors, etc.
• Expected ROI per territory
This sales prototype would be designed with the agreed-upon
goal of an acquisition by a targeted acquiring company.
Acquiring companies will pay a higher value when the products
they are purchasing have proven market traction and can plug
in easily to their existing core sales channel. The main
challenge was to justify the client’s accurate pre-money
valuation and evaluate potential best suitors for their products.
This Sales Prototyping model would also be used to validate
the sales revenue the acquiring company could expect through
acquisition of the medical device company and deployment of
the new product line to its own existing sales channel.
SalesForce4Hire was brought in with the goal to accelerate
revenue and successfully sell our client’s product into the
medical device marketplace. Once our custom sales prototype
was developed, we employed our Sales Accelerator™ System,
which was completed in less than 30 days, to develop and build
a revenue-generating sales team. This team was hired and
ready for training in less than 60 days.
Contact Us:
Phone: 800.717.7344
Website: salesforce4hire.com
Email: [email protected]
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• Increased valuation at exit
Validation
The “shared risk/shared reward” Sales Prototyping model
utilized by SalesForce4Hire benefited all parties involved in the
acquisition of the medical device company. It allowed the
medical device company to have a sales model in place that
was carefully designed and targeted to help determine its
product’s ultimate viability in the marketplace. In addition, the
custom-designed sales prototype placed the medical device
company in the best possible position to be acquired, with
fewer burdens on its acquirer to integrate its product line into
its business.
The acquisition expanded market presence beyond the United
States and into the global market, placing our client’s technology in the hands of surgeons worldwide. Sales Prototyping
allowed the acquiring company to leverage a proven model,
validating the due diligence process prior to acquisition.